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Senator Faulkner also announced the army would acquire seven new Boeing CH-47F Chinook transport helicopters to replace six older CH-47D Chinooks.

The CH-47F was the most modern and capable version of the Chinook which had proved a significant asset in Afghanistan.

As well, the government has approved Australian involvement in the US and international program to upgrade the Lockheed C-130J Hercules transport aircraft, the workhorse of the RAAF. Australia operates 12 of these aircraft.

The new naval helicopters will replace elderly Sea King and Seahawk helicopters.

They will also fill the role which would have been taken by Seasprites which never entered service after the government cancelled the $1 billion project.

Until Senator Faulkner’s announcement, it was unknown whether the government would opt for a single-source selection, for which the American contender was tipped as favourite, or a full tender process.

Both contenders have strong claims.

The MH-60R (Romeo) is a modernised version of the familiar Seahawk.

It is in US Navy service and features advanced and proven missions systems. It is regarded as low risk, cheaper than NFH-90 and the first could be delivered next year.

NFH-90 is a navy version of the MRH-90 of which the Australian army is buying 40.

It is bigger than Romeo and even with the full range of missions systems installed can carry seven passengers in the important utility role.

But it is only now entering service with European navies so is not quite as mature as Romeo.

However NFH-90 would be assembled in Queensland by Australian Aerospace, meaning Australian jobs.